Observations and Reminscences from world of hot and cold rolled steel strip

Thursday, February 28, 2008

Hot-rolled steel prices are heading for record highs

OK, I have been "going on" about steel prices for weeks now, but here is an extract from an article at Purchasing.com

As every steel buyer knows, the current cost-driven environment is driving prices to record highs—with further increases probable in coming months. So, while the actual average transaction price for hot-rolled sheet in coil is $663 this month, according to Purchasing surveys of buyers, the mills have announced prices for March in a range of $670 to $700. Looking ahead, most market mavens believe buyers will have to pay dramatically higher prices ahead—as much as $780 by May—since low-priced foreign tonnage has all but dried up.

However, David Kay, executive vice president and CFO of hot-rolled sheet in coil converter Gibraltar Industries of Buffalo, N.Y., has joined a group of analysts who don’t expect flat-rolled steel prices to continue climbing all year. He tells Wall Street analysts in a conference call this week: “I don’t think anybody’s forecasting the price to stay at $750 for the whole year.” He adds that his financial team members “certainly have not put a plan together that says steel pricing will be between $750 and $800 a ton” for the rest of 2008.